Impact of COVID 19 and India 2020–2

Hello friends! Feeling Good to see you all here back with me my part 2 of COVID 19 and India 2020. In part1, we have discussed how badly corona has affected our economy. Friends, each one of us has been affected due to the huge killer attack of COVID19. “COVID19” with 7 letters and digits has been ruling on our lives and so hardly effected our lives, on our economy from 7 months. Let’s see its impacts on our economy.

Impacts:-

Under complete lockdown, less than a quarter of India’s $2.8 trillion economic the movement was functional.

Up to 53% of businesses in the country were projected to be significantly affected.

Those in the informal sectors and daily wage groups have been at the most risk.

A large number of farmers around the country who grow perishables also faced uncertainty.

Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials. Stock markets in India posted their worst losses in history on 23 March 2020.

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On 26 May, CRISIL made the following statement:

India’s fourth recession since independence, the first since liberalization, and perhaps the worst to date is here.

Exports and imports

India’s exports in April 2020 fell by -36.65% year-on-year, while imports in April 2020 fell by -47.36% as compared to April 2019.India’s exports fell across numerous sectors in April 2020 as compared to the same period last year.

A study during the first two weeks of May by the Public Health Foundation of India, Harvard T H Chan School of Public Health and the Centre for Sustainable Agriculture found that “10% of farmers could not harvest their crop in the past month and 60% of those who did harvest reported a yield loss” and that a majority of farmers are facing the difficulty for the next season.

From 20 April, under new lockdown guidelines to reopen the economy and relax the lockdown, agricultural businesses such as dairy, tea, coffee, and rubber plantations, as well as associated shops and industries reopened.

By the end of April, ₹17,986 crores (US$2.5 billion) had been transferred to farmers under the PM-KISAN scheme.

Manufacturing

Major companies in India such as Larsen and Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, the fashion and retail wing of Aditya Birla Group, Tata Motors, and Thermax temporarily suspended or significantly reduced operations in several manufacturing facilities and factories across the country. iPhone producing companies in India also suspended a majority of operations. Nearly all two-wheeler and four-wheeler companies put a stop to production until further notice. Many companies have decided to remain closed till at least 31 March such as Cummins which has temporarily shut its offices across Maharashtra.

Hindustan Unilever, ITC, and Dabur India shut manufacturing facilities except for factories producing essentials.

Fox conn and Wistron Corp, iPhone producers, suspended production following the 21-day lockdown orders.

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In the third week of March, Amazon announced that it would stop the sale of non-essential items in India so that it could focus on essential needs.

On 25 March, Walmart-owned Flipkart temporarily suspended some of its services on its e-commerce platform and would only be selling and distributing essentials.

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Defense

The Department of Military Affairs led by the Chief of Defense Staff postponed all capital acquisitions until the coronavirus pandemic recedes. No new major defense deals would be made at the beginning of the financial year 2020–21.

In May, the Chief of Defence Staff General Bipin Rawat again emphasized the need for India to minimize costly defense imports and boost domestic production.

Covid19 has effected everybody and India 2020. We hope soon with the ending of 2020, we might end COVID19 and still, we have to face many obstacles and we have to overcome it with a new beginning in 2021. Hoping for the best, praying for the best, and wishing you good health. That’s all for today. We”ll be soon back with a new blog. Stay Tuned.

Originally published at https://www.thelitthings.com.